Zhejiang Geely Holding Group (ZGH) has announced that it has signed a framework cooperation agreement with electric car maker Faraday Future (FF), which will see both parties cooperate in technology and engineering support. More importantly, the tie-up will also explore the possibility of using OEM production services provided by ZGH’s joint venture company with Foxconn.

It is widely assumed that the Geely-Foxconn company will be responsible for manufacturing FF electric vehicles, namely the FF 91 for now. Reuters previously reported that FF is looking to set up a new base in China and is enlisting Geely for contract manufacturing services. The EV maker has previously said it is adopting a global hybrid manufacturing strategy that includes its own facility in Hanford, California and a contract manufacturing partner in South Korea.

In an official release, ZGH also confirmed that is has become a minority investor in FF, which is set to go public on the NASDAQ through a merger with Property Solutions Acquisition Corp (PSAC), a special purpose acquisition company (SPAC) that was formed in July 2020.

A SPAC is a shell company that raises funds in an initial public offering (IPO) with the aim of buying a private company, in this case, FF. For the company that is being acquired, the merger is an alternative way to go public compared to a traditional IPO.

The merger will provide around USD1 billion of proceeds to FF, with USD230 million in cash coming from PSAC, while USD775 million will be from common stock PIPE (private investment in public equity), valued at USD10 per share.

The deal, which will be closed within the first quarter of 2021, is said to provide FF with an estimated valuation of approximately USD3.4 billion, after which it will trade on the NASDAQ under the new ticker symbol “FFIE.”

According to FF, the larger portion of the proceeds comes from 30 anchor investors that include leading institutional shareholders from the United States and Europe, a “top three Chinese OEM” and a tier-one city in China.

The company didn’t provide a full list of investors, but it’s now confirmed that ZGH is involved. Sources have also revealed to South China Morning Post that Zhuhai Gree Group and Zhuhai Huafa Group, two state-owned companies controlled by the government of Zhuhai in the Guangdong province, are also among the investors.

FF was founded in 2014 by Jia Yueting (commonly known as YT), the same man responsible for setting up LeEco years earlier. Since its inception, FF has invested over USD2 billion into developing the FF 91, which entered pre-production back in 2018, and a second model called the FF 81, along with progressing R&D work.

Unfortunately, financial issues crippled the company’s progress, which warranted more funding to be sourced in order to ensure production plans remained on track, but to no avail. The company faced more turmoil on October 14, 2019, when YT filed for personal bankruptcy in the United States’ federal court in Delaware, after which he decided to step down from his role as CEO of FF to instead become the company’s chief product and user officer.

Since September 2019, FF’s current CEO is Carsten Breitfeld, who co-founded Byton and was previously head of the BMW i programme, responsible for bringing the i8 to market.